EUR/NOK jumps to 8.92 post-CPI, session tops

The Norwegian Krone met extra upside pressure on Friday in the wake of the CPI releases, with EUR/NOK testing fresh tops near the 8.9200 handle.

EUR/NOK higher on data

The cross leapt to the upper end of the range after inflation figures tracked by the CPI in the Nordic economy missed expectations in January. In fact, consumer prices have contracted at a monthly 0.1% and advanced 2.8% over the last twelve months.

Further data saw Core CPI YTD rising 2.1% and Core Inflation contracting 0.5% on a monthly basis.

The data surprised investors to the downside and prompted NOK to drop to multi-day lows vs. its European peer. However, the Krone has been appreciating almost uninterruptedly in the last weeks – particularly on the back of the recovery in the Brent crude - dragging the cross to levels last traded in July 2015 and encouraging the Norges Bank to keep its ‘on hold’ stance.

EUR/NOK significant levels

As of writing the cross is gaining 0.34% at 8.9170 facing the next hurdle at 8.9351 (20-day sma) followed by 8.9648 (low Jan.6) and then 8.9984 (55-day sma). On the downside, a break below 8.8601 (low Feb.9) would open the door to 8.8429 (low Feb.7) and finally 8.8256 (2017 low Feb.6).